Next-Generation Sequencing Market
Number of pages: 120 | Report Format: PDF | Published date: January 28, 2022
Historical Years – 2021 | Base Year – 2022 | Forecasted Years – 2023-2031
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Report Attribute |
Details |
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Market Size Value in 2022 |
6.83 billion |
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Revenue Forecast in 2031 |
41.196 billion |
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CAGR |
22.10% |
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Base Year for Estimation |
2022 |
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Forecast Period |
2023-2031 |
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Historical Year |
2021 |
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Segments Covered |
Technology, Type, End User, And Region |
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Regional Scope |
North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa |
According to the deep-dive market assessment study by Growth Plus Reports, the global next-generation sequencing market was valued at US$ 6.83 billion in 2022 and is expected to register a revenue CAGR of 22.10% to reach US$ 41.196 billion by 2031.
Next-Generation Sequencing Market Fundamentals
Next-generation sequencing (NGS) refers to a set of technologies that enable rapid and cost-effective sequencing of DNA or RNA molecules. NGS has revolutionized genomics research and has found applications in various fields such as biomedical research, clinical diagnostics, agriculture, and evolutionary biology. Unlike traditional Sanger sequencing, which sequences one DNA fragment at a time, NGS platforms can simultaneously sequence millions to billions of DNA fragments in a massively parallel manner. This high-throughput capability has dramatically increased the speed and reduced the cost of DNA sequencing, making large-scale genomic projects feasible. NGS has numerous applications, including genome sequencing, transcriptome analysis, epigenetics, metagenomics, and cancer genomics. NGS continues to evolve, with ongoing advancements in sequencing technologies and data analysis methods, making it an indispensable tool for diverse areas of biological research and clinical applications.
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Next-Generation Sequencing Market Dynamics
The expanding patient population suffering from genetic illnesses drives the NGS market's growth pace. Next-generation sequencing technology has been extensively employed in recent years to uncover genetic variants related to hereditary disorders. Furthermore, NGS technology plays an essential role in diagnosing and treating genetic illnesses. The population afflicted by genetic conditions is constantly expanding, and the WHO estimates that genetic diseases impact millions of individuals globally. According to Oxford Population Health in 2023, nearly 5,500 people with severe genetic disorders were recorded. Similarly, the growing number of genetic illnesses and the expanding population affected by these diseases are predicted to increase the use of next-generation sequencing technology in diagnostic and treatment processes, boosting the market's growth rate.
The NGS market is also expanding due to breakthroughs in genomics research. Numerous notable advances in genomics research have occurred, and NGS has played a significant part in supporting this progress. Next-generation sequencing has significantly increased the speed and accuracy of sequencing whole genomes. Next-generation sequencing technology is crucial in analyzing massive volumes of genetic data and determining the origins of various illnesses. Furthermore, the use of next-generation sequencing in the development of personalized medicine is increasing. Researchers and healthcare professionals have used next-generation sequencing to analyze genetic variations in order to understand the risk of genetic illnesses better and create personalized medicines.
The cost of sequencing has steadily decreased in recent years, making NGS more inexpensive and accessible to academics and clinicians, resulting in increased application of NGS technology in clinical settings. Furthermore, the expanding use of NGS in clinical diagnostics, increased use of NIPT, increased use of NGS in microbiology for pathogen detection and identification, and research into microbial communities drive the NGS market growth. Moreover, improving the reimbursement scenario for NGS technology in various countries is likely to lead to higher adoption of NGS technology and, thereby, is expected to boost the market growth. For instance, in Jan 2020, the Centers for Medicare & Medicaid Services (CMS) announced to cover FDA approved or cleared laboratory diagnostic tests using next-generation sequencing (NGS) for patients with germline (inherited) ovarian or breast cancer.
Next Generation Sequencing Market Ecosystem
The global next-generation sequencing market has been analyzed from the following perspectives: technology, type, end user, and region.
Next Generation Sequencing Market by Technology
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Based on the technology, the global next-generation sequencing market is segmented into whole genome sequencing, whole exome sequencing, targeted sequencing, and others.
Targeted sequencing plays a significant role in the next-generation sequencing (NGS) market, thus accounting for sizeable revenue shares in the global market. Targeted sequencing allows researchers to focus on specific regions of interest within the genome rather than sequencing the entire genome. By selectively sequencing only the desired genomic regions, targeted sequencing reduces the sequencing depth and overall cost compared to whole-genome sequencing. This cost-efficiency makes targeted sequencing more accessible and feasible for research and clinical applications. By concentrating sequencing efforts on specific genomic regions, targeted sequencing achieves higher coverage depth and sensitivity compared to whole-genome sequencing. This increased coverage improves the detection of genetic variations, including single nucleotide variants (SNVs), insertions, deletions, and structural variations. Targeted sequencing is particularly valuable when studying genes or regions with known disease-causing mutations or investigating specific genetic markers associated with certain conditions. Targeted sequencing allows researchers to design customized panels focusing on specific genes, genomic regions, or functional elements of interest. This flexibility enables researchers to tailor their sequencing approach to specific research questions or clinical objectives.
Furthermore, it generates less data compared to whole-genome sequencing, simplifying data management and analysis. With a reduced dataset, the bioinformatics analysis becomes more manageable, requiring less computational power and time. This advantage makes targeted sequencing a preferred choice for studies that require rapid data processing and analysis. Targeted sequencing is widely used in clinical and diagnostic settings, where precise and efficient analysis is essential. It is employed in molecular diagnostics to identify disease-causing mutations, screen for inherited genetic disorders, and guide personalized treatment decisions.
Next Generation Sequencing Market by Type
Based on the type, the global next-generation sequencing market is segmented into instruments and software, consumables, and services.
NGS instruments or sequencing segment leads the global market with a market share of 73% and is expected to retain its dominance during the forecast period. NGS instruments or sequencing platforms form the foundation of the NGS workflow. These platforms utilize different sequencing technologies and chemistries to generate sequencing data. The availability of diverse sequencing platforms allows researchers and laboratories to choose the most appropriate technology for their specific applications, driving the growth of the NGS market. NGS instruments include components and modules for sample preparation and library construction. These steps involve DNA or RNA fragmentation, adapter ligation, amplification, and purification. Instruments such as automated liquid handling systems, DNA shearing devices, and library preparation kits facilitate these processes, ensuring accurate and efficient preparation of sequencing libraries. Efficient sample preparation instruments are critical for NGS, as they contribute to the quality and reproducibility of sequencing data. NGS instruments are responsible for the actual sequencing process, generating vast amounts of sequencing data. They capture the fluorescent signals or other signal output from the sequencing reaction and convert them into DNA or RNA sequences.
NGS platforms incorporate mechanisms for real-time quality control during the sequencing process, enabling users to monitor sequencing quality metrics and identify potential data accuracy issues. NGS generates massive volumes of sequencing data that require sophisticated bioinformatics software tools for data analysis, interpretation, and visualization. Bioinformatics software is crucial in aligning sequencing reads to reference genomes, identifying genetic variations, calling variants, detecting gene expression levels, and conducting various downstream analyses. Instruments and software solutions for data management, storage, and archiving are essential for handling the massive datasets generated by NGS experiments. These solutions enable researchers to organize, store, and access their sequencing data, ensuring data security, integrity, and accessibility for future analysis and reference.
Next Generation Sequencing Market by End User
Based on the end user, the global next-generation sequencing market is segmented into healthcare and diagnostic centers, pharmaceutical and biotechnology companies, contract research organizations, and research and academia.
Pharmaceutical and biotechnology companies account for the largest revenue share in the global next-generation sequencing (NGS) market. NGS plays a critical role in drug discovery and development processes. Pharmaceutical and biotechnology companies heavily rely on genomics data to identify potential drug targets, study disease mechanisms, and optimize drug efficacy and safety. NGS enables comprehensive profiling of genomes, transcriptomes, and epigenomes, providing valuable insights into disease biology and therapeutic interventions. Pharmaceutical and biotech companies utilize NGS to stratify patient populations, develop companion diagnostics, and design targeted therapies. These companies can tailor their treatments to specific patient subgroups by leveraging NGS technologies, increasing treatment efficacy and reducing adverse effects. NGS enables the identification and validation of biomarkers, which are indicators of disease presence, progression, or response to therapy. Additionally, these companies employ NGS to identify genetic variations, gene expression patterns, or epigenetic modifications that can serve as biomarkers for various diseases. NGS empowers pharmaceutical and biotech companies to discover and validate biomarkers more efficiently and comprehensively.
Furthermore, pharmaceutical and biotech companies invest in NGS technologies and platforms to develop and commercialize diagnostic tests based on genomic analysis. By offering NGS-based diagnostic solutions, pharmaceutical and biotech companies tap into the growing demand for precision diagnostics and contribute to improved patient care. Pharmaceutical and biotechnology companies often collaborate with NGS technology providers, sequencing service providers, or bioinformatics companies to leverage their expertise and infrastructure. Moreover, pharmaceutical and biotech companies have been involved in mergers, acquisitions, and strategic collaborations with NGS technology providers and sequencing service companies over the years. For instance, in 2020, Roche entered into a 15-year, non-exclusive partnership with Illumina to broaden the adoption of distributable next-generation sequencing (NGS) based testing in oncology.
Next Generation Sequencing Market by Region
Based on the region, the global next-generation sequencing market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
North America accounts for the largest revenue share of 50% in the global next-generation sequencing market followed by Asia Pacific. The large share of North America in the global market can largely be attributed to the high prevalence of infectious diseases & cancers, rapid adoption of technologically advanced NGS coupled with favorable reimbursement policies and developed healthcare infrastructure. For instance, in Jun 2020, The U.S. Food and Drug Administration issued an emergency use authorization (EUA) to Illumina, Inc. for the first COVID-19 diagnostic test utilizing next-generation sequence technology. The FDA authorized the Illumina COVIDSeq Test for qualitatively detecting SARS-CoV-2 RNA from respiratory specimens collected from individuals suspected of COVID-19 by their healthcare provider. Moreover, advanced NGS bioinformatics solutions development is also expected to boost the market.
Competitive Landscape
The prominent players operating in the global next-generation sequencing market are:
Strategic Developments
The estimated market size of the global next-generation sequencing market in 2031 is US$ 41.196 billion.
The revenue CAGR for the next-generation sequencing market is 3.6% during the forecast period of 2023 to 2031.
Thermo Fisher Scientific, F. Hoffmann-La Roche Ltd., and Illumina Inc., among others are some of the major key players in the next generation sequencing market.
The Asia Pacific region is projected to grow at high revenue CAGR in the global next-generation sequencing market.
The instruments and software segment dominates the global next-generation sequencing market.
*Insights on financial performance are subject to the availability of information in the public domain